Iam having sweetshop.. i use to chrge 5 percent on sweets but also claim itc on it.. do iam considered as restaurant and other services and not eligible for itc? But iam not having sitting area .. only having counter sale.. I also sell other food prepared such as samosa .. kachori .. chole bhature.. but all i sell over the counter but don’t provide sitting facility.. do iam consider as restaurant? Plz also provide me hsn code and gst rate applicable for the following.. Samosa Kachori Chole samosa Chole bhature Pav bhaji Iceream Other prepared food Do samosa is considered as namkeen?
Hello Sir,
According to the information provided by you and as per the provision of GST Act, all the services provided by you -"Selling all the mentioned products" covered under the category restaurant services. And as per the provisions of GST Act "Tax Rate of 5% is applicable on restaurant services without the benefit of ITC"
SAC code for restaurant service is 9963.
Thanks and Regards
CA Divya Chugh
- You do not fall under the category of restaurant. You are selling goods over the counter. You have to check the GST rates for all the items sold by you.
I sell on sweets and only one snack that is samosa... so iam availing itc.. I found the hsn code and rate of sweets be 2106 snd 5 percent.. But iam not able to find the gst rate and hsn code for samosa.. Plz clarify the things for me and get me the gst rate applicable for samosa and hsn code for it as my shop is sweetshop and availing itc
Hello,
You won't be considered as a restaurant under GST. You need to check HSN code for different products you sell and charge GST product-wise accordingly.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Sweets HSN might be either 1702/1704 taxed at 5%.
While Samosa would be covered under HSN 2106, Food preparations not elsewhere mentioned, taxed at 18%.
Samosa won’t be consider under 5 percent.. 2106 namkeen and similar preparation?
Hi
If you dont have sitting area and its counter sale, it won't be considered as restaurant.
Also if iam claiming itc bcz my sweetshop is not considerd as restaurant.. so tell me about the itc which is available on the raw material used for making meals for my employees(labourers)..which i claim expense in Incometax... so can i claim itc on that raw material used for making the meal bcz input tax credit om food item is not allowed 2- if i claim itc on raw material for making sweets.. is it wrong bcz itc on food items is not allowed to be claimed then how could i claim raw material itc for making sweet
Hi,
As you are selling the goods over the counter, it won't considered as restaurant.
Further, you need to check the GST rate as well as HSN code product wise.
However, samosa can be covered under HSN 2106.
2106 : Food Preparations Not Elsewhere Specified Or Included.
GST@18% is applicable on the same.
You are eligible to claim ITC.
For raw material used in food specifically for employees, ITC won't be available.
For making sweets to sale them to customers, ITC would be available.
No you wont be considered as restaurant.
You can pay GST on samosa under 2106.
Do you keep separate ration for making food for employees if yes you should not claim its ITC but since its would be a small part of entire turnover you may say that its left over part which employees eat so you dont need to reverse ITC.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
No, you can not claim ITC on the raw material used for making meals for your employees(labourers).